Office building with production facilities in the suburb of Magdeburg, Germany

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Office building with production facilities in the suburb of Magdeburg, Germany

2,610,000 €
1,134 € /m²
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  • Total area
    2,300 m²
  • Yield
    7.3%
  • Built in 
    1995
Details
Property parameters
  • Land area: 14,000 m²
  • Number of parking lots: 50
  • 2-floor building
Financial performance
  • Annual income: 190,000 €
Tenants
  • Fully let
  • End of lease: 2022
Transaction costs
  • Notary (state registration): 1.5%
  • Acquisition tax: 5.0%
  • Broker: 5.0% + VAT

Two-story office building in an industrial park.

Description

The building has an area of 2,300 m²: 1,170 m² is for bureau and 1,130 m² is for production spaces. Production spaces are also equipped as for offices.

The total built-up area is 7,200 m². Construction of additional buildings (office or production spaces) is possible on the undeveloped land area of 7000 m².

There is parking for 50 cars.

Financial performance

The absolute annual income is 190,000 €.

The current yield is 7.3%.

Tenants

The tenant is a large company with a turnover of more than 50 billion euros, with branches in more than 200 countries. The company has been renting the space since 1995.

It is possible to extend the agreement until 2022 with the renewal option for 1x2 years more.

Transaction costs

Notary (state registration) is 1,5 – 2%.

Acquisition tax is 5,0%.

Brokerage fee is 5% + VAT 19% (total 5,95%).

Location and nearby infrastructure

The property is located in an industrial park in the suburbs of Magdeburg — about 15 km from the city center.

Magdeburg is the capital of Saxony-Anhalt. The population of the city is about 250,000 inhabitants.

Mechanical engineering is one of the most important industrial sectors of the city. More than 150 years ago, powerful machine-building plants were built in Magdeburg by companies such as Gruson, Wolf and Polte.

Magdeburg has established itself as a place for business in the field of information and communication technologies (ICT). Otto von Guericke University, Magdeburg-Stendal University of Applied Sciences, a number of institutions of supplementary education, research centers, and training centers — all this helps to create highly qualified and qualified specialists. Industry giants such as IBM, Regiocom, and T-Systems are located here.

Highways and train connections link Magdeburg with Hamburg, Berlin, Hanover, Leipzig, and Dresden.

Magdeburg Port (2nd largest in Germany) is a logistics partner for multimodal transport chains.

The University of Magdeburg annually trains more than 13,000 students in 9 faculties.

More properties

If this ad doesn't suit you, have a look at the other office buildings for sale in Magdeburg.

All ads in the country: office buildings for sale in Germany.

Tranio helps to manage property after purchase

Our local team at Tranio in Germany will take up property management or recommend professional German partners.

The terms and conditions of our engagement depend on the condition and location of the property and are to be discussed in each particular case.

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  • icon Property maintenance and insurance
  • icon Search for tenants, contracting, and control over rent collection
  • icon Arrangements for bookkeeping and tax advice
Сonstruction loan as an alternative to commercial property investment

Developers with a good track record that give warranties or procure a record in the land register.

There is no need to incorporate a legal entity or open an account in Germany.

No extra charges to maintain or operate the property.

Comparing a office building purchase with a construction loan

Investment vehicle
Office building
Construction loan
Yield per annum
7.3%
8—10%
Investment budget
2,610,000 €
from 300,000 €
Buying expenses
10—15%?
  • 1 – 1,5 % — lawyer
  • 2,3 – 3,2 % — notary and state registration
  • 3,5 % – 6,5 % — acquisition tax
  • 3-6% + VAT — broker's fee

Percentage of the property value

0—2%?

The expenses on an independent legal review of the project

Investment term
from 5 years
to 3 years
Risk level
Low
Moderate
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